noun
inflationary gap
Economic term for the amount by which aggregate demand exceeds the full-employment level of output, causing upward pressure on prices.
政府はインフレギャップを縮小するために金融引き締めを行った。
The government tightened monetary policy to reduce the inflationary gap.
Variant with interpunct; less common but seen in some texts.
The opposite concept: a deflationary gap, where aggregate demand is below the full-employment level.
Loanword from English 'inflationary gap', composed of インフレ (inflation) and ギャップ (gap).